Greece’s orange2fly loan declined, given creditor protection

Greek gov't unveils €115mn in support for airline industry

The Greek government has announced a EUR115 million euro (USD127.65 million) aid package for the tourism-dependent country's ailing aviation industry.

A joint statement issued by the Ministries of Finance, Labour, and Transport said the assistance would come in various forms including tax breaks for flight and cabin crews as well as ground handling staff which will save airlines roughly EUR7.7 million (USD8.55 million) annually.

Value Added Tax (VAT) will also be reduced from the current rate of 24% to 13% for the remainder of the summer season. This will generate EUR30 million (USD33.3 million) in savings for airlines. Also, a co-work program worth EUR50 million (USD55.5 million) in employee social welfare contributions will be implemented for the period June 15 to December 31, 2020.

The state will also increase subsidies for flights to remote Greek islands that operated during the April/May period, over and above their existing PSO subsidisation, to the tune of EUR20 (USD22) per seat or EUR6 million (USD6.6 million) in total.

The move will benefit Greece's ailing airline sector which, aside from Aegean...

Europe airline suspensions, country closures 23-29MAR

Greece's Aegean Airlines takes stake in Animawings

Aegean Airlines (A3, Athens Int'l) has taken a minority 25% stake in Romanian start-up Animawings (AWG, Bucharest Otopeni). The Greek carrier said in a stock market disclosure that the shareholding was valued at EUR412,000 euro (USD465,000).

Animawings is majority-owned by Memento Group, a Romanian travel agency that, Aegean said, has been a longtime customer chartering in aircraft for flights from several Romanian cities to the Greek islands of Crete, Rhodes, and Kerkyra.

It is in the process of completing its certification with the Romanian civil aviation authority ahead of an early May debut.

Animawings is also backed by Greek ACMI/charter specialist orange2fly (OTF, Athens Int'l), from which it will wet-lease two A320-200s. By 2025, it expects to operate a fleet of five A320s.

As previously reported, Animawings will operate charter flights on behalf of Romanian tour operators, including but not limited to Memento Group's subsidiary Christian Tour, to destinations throughout the Mediterranean basin, Egypt, and the Canary Islands.

Greece's Air Mediterranean barred from Kosovo